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Investors in Fiore Gold Ltd. (CVE:F) had a good week, as its shares rose 2.1% to close at CA$1.47 following the release of its annual results. Revenues were US$78m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.18, an impressive 29% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, Fiore Gold's twin analysts are now forecasting revenues of US$103.8m in 2021. This would be a substantial 33% improvement in sales compared to the last 12 months. Per-share earnings are expected to grow 15% to US$0.21. In the lead-up to this report, the analysts had been modelling revenues of US$109.6m and earnings per share (EPS) of US$0.12 in 2021. Although the analysts have lowered their sales forecasts, they've also made a great increase in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.
There's been no real change to the average price target of US$1.96, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. Next year brings more of the same, according to the analysts, with revenue forecast to grow 33%, in line with its 39% annual growth over the past three years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.7% next year. So although Fiore Gold is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Fiore Gold's earnings potential next year. They also downgraded their revenue estimates, although industry data suggests that Fiore Gold's revenues are expected to grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Fiore Gold going out as far as 2025, and you can see them free on our platform here.
We also provide an overview of the Fiore Gold Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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